Group 1: Stock Performance and Technical Analysis - Semiconductor sector in Hong Kong showed strong performance, with SMIC (00981) stock price at 58.8 HKD, up 1.03% as of 10:43 AM [1] - Technical indicators suggest a bullish trend for SMIC, with RSI at 56 indicating room for upward movement, and MACD showing buy signals [1] - Current support levels are at 53.8 HKD and 50.2 HKD, while resistance levels are at 63.5 HKD and 68.5 HKD [1] Group 2: Product Review and Derivative Performance - As of September 4, SMIC-related derivatives performed well, with UBS bull certificates rising 24% and HSBC bull certificates increasing by 19% [3] - Call options such as Societe Generale's and HSBC's recorded returns of 10% and 11%, respectively, indicating significant leverage during SMIC's stock price increase [3] Group 3: Market Insights and Investor Behavior - SMIC's stock price has risen from around 20 HKD at the beginning of the year to recent highs near 65 HKD, attracting market capital and retail investors [5] - Recent inflows into SMIC's bullish instruments totaled 20 million HKD over the past five trading days, ranking fourth among individual stocks [5] - The preference for call options over put options reflects investor sentiment, with many investors favoring bullish strategies [7] Group 4: Investment Products and Strategies - Investors bullish on SMIC can consider options like the Bank of China call option (19343) with a strike price of 69.04 HKD and a leverage of approximately 2.7 times [8] - Bearish investors may look at put options such as Bank of China (19573) or HSBC's, both with strike prices around 49.8 HKD and leverage of about 2.2-2.3 times [8] - For bull certificates, UBS's (68925) and Societe Generale's (55424) options are highlighted for their low premiums and high leverage [10]

Group 1: Hang Seng Index (HSI) - Investors remain optimistic about the Hang Seng Index, expecting it to challenge 26,000 next week, with a buyback price of 24,800 for bull certificates [1] - Short-term technical signals indicate a "sell" recommendation, with bearish signals prevailing; support at 25,000 and resistance at 25,700 and 26,100 [1] - Cautious investors are advised to choose products with a buyback price below the second support level of 24,733 [1] Group 2: Hua Hong Semiconductor (01347.HK) - The stock price closed at 47.58, with investors holding call options with an exercise price of 48; short-term signals indicate a "buy" [7] - Resistance levels are identified at 52.8 and 56.6, with a recommendation to consider options with an exercise price of 50, which is slightly out of the money [7] Group 3: Meituan-W (03690.HK) - The stock price has been trading between 98 and 104 for two weeks, with a closing price of 103; the recommendation is a "buy" [9] - Resistance levels are at 118.9 and 119.1; caution is advised for investors holding options with an exercise price of 158, as it is significantly out of the money [9] Group 4: BYD Company (01211.HK) - The stock is viewed as a strong buy, with potential for a rebound; support levels are at 102.3 and 95.9 [14] - Investors are considering bullish certificates with a target of 100 [14] Group 5: China Shenhua Energy (01088.HK) - The stock has closed above the middle line of the Bollinger Bands, but the overall signal is a "sell" [18] - Support levels are at 35.2 and 34.5, which investors should consider [18] Group 6: Sunny Optical Technology (02382.HK) - The stock is below the middle line of the Bollinger Bands; the recommendation is a "buy" [24] - Resistance levels are at 83.4 and 87.6, with short-term support at 75.9 and 71.2 [24]

Core Viewpoint - Galaxy Entertainment (00027) is currently experiencing volatility in its stock price, trading between 41 and 42 HKD, with a trading volume of 139 million HKD, indicating a critical battle between bulls and bears as the market focuses on potential breakout directions [1][6]. Technical Analysis - The current support levels for Galaxy Entertainment are at 39.8 HKD (Support 1) and 38.9 HKD (Support 2), while resistance levels are at 42.8 HKD (Resistance 1) and 43.6 HKD (Resistance 2) [1]. - The stock price is slightly above the 10-day moving average of 40.99 HKD and has clearly surpassed the 30-day (39.73 HKD) and 60-day (37.71 HKD) moving averages, indicating a positive medium-term trend [1]. - The Relative Strength Index (RSI) is currently at 63, approaching the overbought zone, with several oscillators showing neutral to bullish signals, and momentum oscillators indicating a buy signal, reflecting a moderate upward trend [1]. Market Sentiment and Investment Flow - There has been a notable increase in the issuance of call warrants related to Galaxy Entertainment, with approximately 27 million warrants in circulation, reflecting strong investor interest [3]. - The stock has seen a rise from the low 20s to the recent 40s, driven by positive data from mainland tourists and Macau's gaming revenue growth, alongside tourism promotions and new hotel openings [3]. - The latest call warrant issued by the company has a strike price of 51.88 HKD, expiring in January next year, with a leverage of around 6 times, indicating strong investor engagement [3][4].

Market Overview - US stock market is under pressure due to rising long-term bond yields, with the 10-year US Treasury yield reaching 4.3043% and the UK 30-year yield hitting 5.72% [8][10] - Gold prices have increased for six consecutive days, reaching a new high of $3,539 per ounce, driven by heightened risk aversion [8] - A-shares are experiencing active financing, with margin trading balances rising to 2.29 trillion RMB, indicating an increased willingness to allocate assets in China [8][12] Company Focus - Three Life Pharmaceuticals reported a revenue of 4.36 billion RMB for the first half of 2025, a slight decrease of 0.8% year-on-year, but net profit attributable to shareholders increased by 24.6% to 1.36 billion RMB, reflecting significant improvement in profitability [21] - China Bank's mid-year results showed a revenue growth of 3.6% year-on-year, with total assets reaching 36.79 trillion RMB, a 4.93% increase from the end of last year, making it a defensive investment choice in the Hong Kong banking sector [21] - Li Jin Technology, a leader in die-casting and injection molding, is expected to benefit from the automation and smart manufacturing market due to its partnerships with several new energy vehicle manufacturers [21] Economic Data - The US ISM manufacturing index for August slightly rose to 48.7, remaining below the neutral level of 50 for six consecutive months, indicating ongoing contraction in manufacturing activity [10] - China's economic data showed weakness, with July industrial output, retail sales, and fixed asset investment all underperforming expectations, leading to predictions of further economic slowdown in August [12] Investment Strategy - Recommended investments include gold ETFs like GLD or IAU due to strong demand for safe-haven assets [8] - A-shares ETFs such as CSI300 or Shanghai-Shenzhen 300 index ETFs are suggested for exposure to the recovering Chinese market [8] - The report highlights ASE Technology Holding Co., which holds over 30% market share in the global semiconductor packaging and testing market, benefiting from the surge in AI chip demand [23]

Market Performance - The Hang Seng Index opened 96 points higher and closed 78 points or 0.3% up at 25,077 points, with a daily trading volume of HK$335.601 billion. The H-share Index rose 30 points or 0.35% to 8,947 points, and the Hang Seng Tech Index climbed 30 points or 0.5% to 5,674 points [1]. - A-share major indices advanced, with the ChiNext performing strongly, rising over 2%. The Shanghai Composite Index closed at 3,857 points, up 14 points or 0.4%, with a trading volume of RMB 1.22 trillion. The Shenzhen Component Index ended at 12,696 points, up 124 points or 1%, with a turnover of RMB 1.58 trillion. The ChiNext Index finished at 2,890 points, up 62 points or 2.2%, with a trading volume of RMB 763.8 billion [1]. - US stocks fell on Friday as investors took profits ahead of the US Labor Day long - weekend. The S&P 500 Index dropped 41 points or 0.6% to 6,460 points, the Nasdaq Composite Index declined 249 points or 1.2% to 21,455 points, and the Dow Jones Industrial Average closed 92 points or 0.2% lower at 45,544 points [2]. Macroeconomic Data - The PBOC conducted 782.9 billion yuan of seven - day reverse repurchase operations on the 29th, with an unchanged operating rate of 1.4%. With 361.2 billion yuan of reverse repurchases maturing, the net injection for the day was 421.7 billion yuan. The central parity rate of the RMB against the US dollar was raised by 33 points to 7.1030, and the PBOC raised the RMB central parity rate by 0.65% in August, the largest increase since September last year [1]. - Japan's S&P Manufacturing PMI final value for August was revised down to 49.7, slightly lower than the initial value of 49.9 but better than July's 48.9 [2]. - The US Washington, D.C. Circuit Court of Appeals ruled 7 - 4 that the reciprocal tariffs and multiple tariffs against China, Canada, and Mexico introduced by US President Trump in April were illegal [2]. - China's manufacturing PMI in August rose to 49.4, up 0.1 percentage point month - on - month, slightly lower than the market expectation of 49.5, and remained in the contraction zone for five consecutive months [3]. - In August, the average price of new homes in 100 cities was RMB 16,910 per square meter, up 0.20% month - on - month and 2.73% year - on - year. The average price of second - hand homes in 100 cities was RMB 13,481 per square meter, down 0.76% month - on - month and 7.34% year - on - year [3]. Company News Acquisition and Business Expansion - Huahong Semiconductor (01347.HK) plans to acquire the remaining 97.4988% equity of Shanghai Huali Microelectronics' 12 - inch integrated circuit wafer foundry service business from Huahong Group, Shanghai Integrated Circuit Fund, National Integrated Circuit Industry Fund II, and Guotou Leading Fund to achieve full ownership. The consideration includes cash and the issuance of consideration shares at an issue price of RMB 43.34, a 44.79% discount to the pre - suspension closing price of A - shares [3]. - SMIC (00981.HK) is planning to acquire a 49% stake in its subsidiary SMIC North through the issuance of A - shares. The company's A - shares will be suspended from trading starting September 1, 2025, with an expected suspension period of no more than 10 trading days [6]. Financial Results - Giant Group Legend (06683.HK) reported a six - month interim revenue of RMB 355 million for the period ended June, a 33% year - on - year increase. New consumer business revenue was RMB 211 million, up 91.5%. Gross profit was RMB 156 million, up 16.3%. Net profit was RMB 10.27 million, down 58.9% mainly due to a fair - value loss of RMB 19.5 million on Hong Kong - listed equity securities investments [4]. - Agricultural Bank of China (01288.HK) reported a net profit of RMB 139.51 billion for the six - month period ended June, a 2.7% year - on - year increase. Earnings per share were 0.37 yuan, and an interim dividend of 0.1195 yuan per share was declared [4]. - CR Beverage (02460.HK) reported a six - month revenue of RMB 6.206 billion for the period ended June, a 18.5% year - on - year decrease. Gross profit was RMB 2.896 billion, down 22.8%. Net profit was RMB 805 million, down 28.6%. Earnings per share were 0.34 yuan, and an interim dividend of 0.118 yuan per share was declared [4]. - China Shenhua (01088.HK) reported a six - month revenue of RMB 138.109 billion for the period ended June, an 18.3% year - on - year decrease mainly due to a decline in coal sales volume and average selling price, achieving 43.2% of the annual target. Net profit was RMB 26.706 billion, down 14.8%. Earnings per share were 1.344 yuan, and an interim dividend of 0.98 yuan per share was declared [5]. - Midea Group (00300.HK) reported a six - month revenue of RMB 252.331 billion for the period ended June, a 15.7% year - on - year increase. Net profit was RMB 26.014 billion, up 25%. Earnings per share were 3.41 yuan, and an interim dividend of RMB 5 per 10 shares was declared [6]. - BYD Co., Ltd. (01211.HK) reported a six - month turnover of RMB 371.281 billion for the period ended June, a 23.3% year - on - year increase, mainly benefiting from the growth of the new - energy vehicle business. Net profit was RMB 15.511 billion, up 13.8%. Earnings per share were 1.71 yuan, and no dividend was declared [6]. - China Railway Construction Corporation Limited (01186.HK) reported a turnover of RMB 489.199 billion for the six - month period ended June, a 5.2% year - on - year decrease. Net profit was RMB 10.701 billion, down 10.1%. Earnings per share were 0.7 yuan, and no dividend was declared [6]. - Alibaba - W (09988.HK) (BABA.US) reported a first - quarter revenue of RMB 247.652 billion for the period ended June 30, 2025, a 1.8% year - on - year increase. Excluding the disposed businesses of Sun Art Retail Group (06808.HK) and Intime, the revenue on a comparable basis increased 10% year - on - year [7]. - Industrial and Commercial Bank of China (01398.HK) reported a net profit of RMB 168.103 billion for the six - month period ended June, a 1.4% year - on - year decrease. Earnings per share were 0.46 yuan, and a dividend of RMB 1.414 per 10 shares was declared, a 1.4% decrease compared to last year's interim dividend of RMB 1.434 per 10 shares [7]. Policy Impact - The US Trump administration announced the revocation of the technology - use exemptions for Samsung Electronics, SK Hynix, and Intel's subsidiaries in China, which will significantly weaken their manufacturing capabilities in China and may disrupt the global supply chain [2][3].

Core Viewpoint - Hua Hong Semiconductor Limited reported a revenue increase of 18.0% year-on-year for the first half of 2025, driven by higher wafer shipments, despite facing a loss for the period of US$84.96 million, which is a 26.7% increase in loss compared to the same period in 2024 [4][6][25]. Financial Performance - Revenue reached US$1,107.0 million, up from US$938.5 million in the first half of 2024, marking an 18.0% increase [4][6]. - Cost of sales increased to US$995.4 million, a rise of 15.9% compared to US$858.8 million in the previous year [4][6]. - Gross profit was reported at US$111.6 million, reflecting a 40.0% increase from US$79.7 million in the first half of 2024 [4][6]. - Other income and gains decreased by 15.7% to US$59.9 million, primarily due to reduced interest income [4][6]. - Administrative expenses rose to US$190.2 million, an increase of 15.9% compared to US$164.1 million in the previous year [4][6]. - The loss before tax was US$81.1 million, a slight increase of 3.3% from US$78.5 million in the first half of 2024 [4][6]. Cash Flow Analysis - Net cash flows from operating activities increased by 59.8% to US$219.8 million, driven by higher receipts from customers [12][13]. - Net cash flows used in investing activities were US$879.8 million, primarily for capital investments [12][13]. - Cash and cash equivalents decreased from US$4,459.1 million to US$3,846.9 million, a decline of 13.7% [8][14]. Business Review - The global semiconductor market saw a year-on-year sales increase of approximately 16% in the first half of 2025, reaching US$366.7 billion [25][26]. - The company operated its 8-inch and 12-inch production lines at full capacity, with the Hua Hong Manufacturing Project achieving rapid capacity ramp-up [26][28]. - The Analog & Power Management platform showed significant revenue growth, benefiting from domestic supply chain localization and demand for AI servers [26][27]. Future Plans - The company is preparing for a potential acquisition of equity interests in Shanghai Huali Microelectronics Corporation, subject to board and regulatory approvals [30][32]. - The second-phase capacity deployment of the Hua Hong Manufacturing project is expected to begin ahead of schedule by the end of 2025 [28][29].

Market Overview - The Hang Seng Index is currently facing resistance at 26,000 points, influenced by the extension of the US-China tariff truce and the Federal Reserve's potential policy adjustments due to changing risk balances [2][4] - The market remains active with a positive risk appetite, as investors rotate funds across different sectors while awaiting earnings reports from major stocks [2] Economic Indicators - The US GDP for Q2 was revised up to a growth of 3.3%, surpassing expectations, which positively impacted US stock indices [3][10] - The Federal Reserve is expected to maintain a cautious approach regarding future interest rate cuts, with projections indicating two rate cuts totaling 0.5% this year [4][10] Company News - Alibaba is reportedly seeking refinancing for a $6.5 billion loan due next year, with ongoing negotiations with banks [3][11] - JD.com is in talks to secure a euro-denominated loan for the acquisition of German retailer Ceconomy [11] - Chery Automobile plans to conduct an IPO in Hong Kong next month, aiming to raise approximately $1.5 billion [11] Sector Focus - The consumer electronics sector is entering a traditional peak season, with major brands set to launch new smartphones [7] - The automotive sector is experiencing mixed results, with Li Auto reporting a 1% decline in Q2 net profit, falling short of expectations, and providing a weak guidance for Q3 [11] Financial Performance - Semiconductor manufacturer SMIC reported a 36% increase in mid-year profit, driven by a 22% rise in revenue [11] - ZTE Corporation's mid-year profit fell by 12%, despite a 14.5% increase in revenue [11] - SenseTime narrowed its mid-year loss to 1.48 billion yuan, with a 35.5% increase in revenue attributed to growth in generative AI [11] Regulatory and Policy Developments - The Chinese government is accelerating reforms to financing platforms to curb local government hidden debt, aiming for sustainable urban development [9] - The Ministry of Commerce is enhancing policy support for foreign trade enterprises to stabilize business confidence and address new challenges [9]

Market Index Performance - The Hang Seng Index dropped 202 points or 0.8% to close at 24,998 points, affected by individual stock performance on the futures settlement day [1]. - The Shanghai Composite Index rose 43 points or 1.14% to close at 3843 points, while the Shenzhen Component Index rose 276 points or 2.25% to 12571 points, and the ChiNext Index rose 103 points or 3.82% to 2827 points. The STAR 50 Index rose over 7%, hitting a 3 - year high [2]. - The S&P 500 Index rose 20 points or 0.3% to 6,501 points, the Dow Jones Industrial Average rose 71 points or 0.2% to 45,636 points, and the Nasdaq Composite rose 115 points or 0.5% to 21,705 points, all hitting record - closing highs [2]. Central Bank Operations - The People's Bank of China conducted 416.1 billion yuan of seven - day reverse repurchase operations on the 28th, with an operating rate unchanged at 1.4%. With 253 billion yuan of reverse repurchases maturing, the net injection was 163.1 billion yuan [2]. - The central parity rate of the RMB against the US dollar was raised by 45 points to 7.1063, reaching the highest level since November 6 last year [2]. Company Performance - China National Offshore Oil Corporation's domestic natural gas daily output exceeded 100 million cubic meters, hitting a new high [3]. - Haier Smart Home (06690.HK) reported a 10.2% year - on - year increase in revenue to 156.469 billion yuan, a 10.6% increase in gross profit to 41.24 billion yuan, and a 15.6% increase in net profit to 12.033 billion yuan in the six - month interim results ending in June. It will pay a dividend of 2.69 yuan per 10 shares [3]. - China Feihe (06186.HK) reported a 9.4% year - on - year decrease in revenue to 9.151 billion yuan, a 17.8% decrease in gross profit to 5.635 billion yuan, and a 46.7% decline in net profit to 1 billion yuan in the six - month interim results ending in June. It will pay an interim dividend of 12.09 HK cents [3]. - ZTE Corporation (00763.HK) reported a 14.5% year - on - year increase in operating revenue to 71.553 billion yuan, but a 11.8% decline in net profit attributable to shareholders to 5.058 billion yuan in the six - month interim results ending in June. It will not pay a dividend [3]. - Li Auto - W (02015.HK) reported a 2% year - on - year decrease in revenue to 56.172 billion yuan, a 0.7% decrease in gross profit to 11.385 billion yuan, and a 2.8% increase in net profit to 1.743 billion yuan in the interim results ending at the end of June [4]. - BeiGene (06160.HK) reported a 44.5% year - on - year increase in revenue to 2.411 billion US dollars in the interim results ending at the end of June this year. It turned from a loss to a profit of 95.59 million yuan, compared with a loss of 372 million yuan in the same period last year. It will not pay a dividend [4]. Policy News - The Office of the United States Trade Representative announced the extension of the exemption period for the 301 investigation into China's actions, policies, and practices regarding technology transfer, intellectual property, and innovation. The original expiration date on the 31st was extended to November 29 [2].

Market Performance - The Hang Seng Index opened 101 points higher on the 27th, rose 129 points to a high of 25,653 points in the early session, then fell back, and closed down 323 points or 1.3% at 25,201 points [1] - The H-shares Index fell 128 points or 1.4% to close at 9,020 points, and the Hang Seng Tech Index fell 84 points or 1.5% to close at 5,697 points [1] - The total turnover of the market increased to HK$371.376 billion, the highest in nearly four months [1] - A-share market opened slightly higher, the ChiNext Index once rose more than 2%, but all three major indices fell in the afternoon. The Shanghai Composite Index closed down 68 points or 1.8% at 3,800 points, with a turnover of RMB 1.33 trillion; the Shenzhen Component Index closed down 178 points or 1.4% at 12,295 points, with a turnover of RMB 1.84 trillion; the ChiNext Index closed down 18 points or 0.7% at 2,723 points, with a turnover of RMB 878.3 billion [2] - In the US stock market on Wednesday, the Nasdaq rose 45 points or 0.2% to 21,590 points, the S&P 500 Index rose 15 points or 0.2% to 6,481 points, and the Dow Jones Industrial Average rose 147 points or 0.3% to 45,565 points [2] Central Bank Operations - The People's Bank of China conducted RMB 379.9 billion of seven-day reverse repurchase operations on the 27th, with the operating rate remaining unchanged at 1.4%. There were RMB 616 billion of reverse repurchases maturing, resulting in a net withdrawal of RMB 236.1 billion [2] - The central parity rate of the RMB against the US dollar was raised by 80 points to 7.1108 [2] Company Earnings - Ctrip Group - S (09961.HK) reported a turnover of RMB 28.714 billion for the six months ended June this year, up 16.2% year-on-year. Net profit was RMB 9.123 billion, up 12% year-on-year, and non-GAAP net profit was also RMB 9.123 billion, up 12% year-on-year. Earnings per share were RMB 13.82. No dividend was declared [3] - Maogeping (01318.HK) reported revenue of RMB 2.588 billion for the six months ended June, up 31.3% year-on-year; gross profit was RMB 2.179 billion, up 30.2%. Net profit was RMB 670 million, up 36.1%, and earnings per share were RMB 1.37. No dividend was declared [4] - China Mengniu Dairy Company Limited (02319.HK) reported revenue of RMB 41.567 billion for the six months ended June, down 6.9% year-on-year due to the oversupply of raw milk and the slower-than-expected recovery of demand. Net profit was RMB 2.046 billion, down 16.4%, and earnings per share were 52.3 cents. No dividend was declared [4] - People's Insurance Company (Group) of China, Ltd. (01339.HK) reported total operating income of RMB 324.122 billion for the six months ended June this year, up 10.9% year-on-year. Net profit was RMB 26.671 billion, up 14% year-on-year, and earnings per share were RMB 0.6. An interim cash dividend of RMB 0.075 per 10 shares was declared, compared with RMB 0.063 per 10 shares in the same period last year [4] - Innovent Biologics, Inc. (01801.HK) reported revenue of RMB 5.953 billion for the six months ended June this year, up 50.6% year-on-year. It turned from a loss to a profit of RMB 834 million, compared with a loss of RMB 393 million in the same period last year. Earnings per share were RMB 0.51. No dividend was declared. Non-IFRS profit was RMB 1.213 billion, compared with a loss of RMB 160 million last year; non-IFRS EBITDA was RMB 1.413 billion, compared with a loss of RMB 161 million last year [5] - Meituan (03690.HK) reported a profit of RMB 365 million for the second quarter ended June 2025, down 96.8% year-on-year. Non-IFRS adjusted EBITDA was RMB 2.782 billion, down 81.5% year-on-year, and adjusted net profit fell 89% to RMB 1.493 billion. Revenue in the second quarter was RMB 91.84 billion, up 11.7% year-on-year, slightly lower than the forecast range of RMB 92.067 billion to RMB 94.534 billion by 8 brokers [5]

Group 1 - The Hang Seng Index (HSI) is expected to open higher next Monday, with predictions of a rise between 300 to 500 points, aiming to challenge the 26,000 mark [1] - Current resistance level for HSI is at 25,578 points, and if broken, it could test 25,995 points [1] - The closing index is at 25,339 points, which is close to the day's high of 25,349 points, indicating a positive trend [1] Group 2 - ZTE Corporation (00763.HK) shows strong momentum, with a recent price of 36.06 HKD, and a potential resistance at 39.9 HKD and 43 HKD [8] - Investors holding a call option with an exercise price of 40 HKD are seeing a 12% out-of-the-money level based on current prices [8] Group 3 - Hua Hong Semiconductor (01347.HK) closed at 56 HKD, with a buy signal despite a significant price increase, and resistance at 63.4 HKD [10] - Support levels are identified at 47.1 HKD and 43.1 HKD [10] Group 4 - Xiaomi Group (01810.HK) closed at 52.55 HKD, below the Bollinger channel, indicating a sell signal [17] - Support levels are at 50.8 HKD and 49.2 HKD, with resistance at 54.6 HKD [17] Group 5 - Kuaishou Technology (01024.HK) fluctuated between 69.2 HKD and 75.3 HKD, with a buy signal but not reaching a strong buy position [20] - Support levels are at 70.5 HKD and 67 HKD [20] Group 6 - Hong Kong Exchanges and Clearing (00388.HK) closed at 448 HKD, with a buy signal and a first resistance level at 456 HKD [28] - Support levels are at 436 HKD and 426 HKD [28]